Finding 1159799 (2024-002)

Finding Number: 2024-002 Federal Program: COVID-19: Coronavirus State and Local Fiscal Recovery Funds (ARPA) - ARPA Water and Wastewater Infrastructure Program Federal Award Identification Number and Year: DEV-2021-181052 Assistance Listing Number (ALN): 21.027 Federal Awarding Agency: Department of the Treasury Pass-through Entity: Ohio Department of Development Repeat Finding: No Material Weakness and Noncompliance – Reporting Criteria: 2 C.F.R. § 200.328 Financial Reporting states, in part, the Federal agency or pass-through entity must collect financial reports no less than annually. The Federal agency or pass-through entity may not collect financial reports more frequently than quarterly unless a specific condition has been implemented in accordance with § 200.208. To the extent practicable, the Federal agency or pass-through entity should collect financial reports in coordination with performance reports. The recipient must submit quarterly program reports as required by the Federal award. In the Ohio Department of Development Water and Wastewater Infrastructure Program Grant Agreement, Statement of Agreement, Section 6 Reporting Requirements, Exhibit II Reporting, Section 2, Program Reports, all grant award recipients are required to submit program reports on a quarterly basis. Quarterly program reports must be submitted by close of business, on the second Friday, at the end of each quarter. Condition: The City did not submit the required Program Reports for all four quarters of 2024. Questioned Costs: None. Identification of How Questioned Costs Were Computed: N/A Context: Through testing of required reporting under terms and conditions of the federal award, we observed the City did not meet the requirements for performance reporting. The required performance reports for all four quarters of 2024 were not submitted. Cause and Effect: The issue results from a lack of monitoring controls related to grant reporting requirements. Failure to submit reports as required could result in noncompliance with grant requirements. Recommendation: We recommend management implement procedures and processes to ensure that all required reports are submitted on time. Views of Responsible Officials and Corrective Action Plan: See Corrective Action Plan.